3401 PR.02 Supplier Invoice Request

Revision Date: 
July 1, 2017

* This procedure has been updated to accommodate Workday Financials business processes and terminology.  Please note the effective revision date.

  • Check Request (CR) is now referred to as Supplier Invoice Request (SIR), in Workday,
  • Expenditure Type is now referred to as Spend Category, in Workday.
  • Vendor is now called Supplier.

Contents

1.     Overview

2.     Payee Information

3.     Non-Employee Travel/Business Meal Reimbursements

4.     Honoraria, Royalties, Study Subject Payments, etc.

5.     Other Payments

6.     Total Amount/Refunds

7.     Obtain Authorizations and Submit the Supplier Invoice Request

1. Overview

The Supplier Invoice Request (formerly known as the Check Request)

Use the Supplier Invoice Request (Check Request) to request payments to non-employees for the following:

  • Travel or other university business expense reimbursements for non-employees
  • Other payments to non-employees such as:
    • Professional services
    • Honoraria
    • Prizes and awards
    • Certain fellowships.

You can also use the Supplier Invoice Request (SIR) to pay licensing agencies, conference sponsors, journal publishers, etc., when a purchasing card cannot be used and there is not a standard invoice.

Supplier Invoice Request versus Employee Reimbursement

Use the Supplier Invoice Request (SIR) for payments to individuals who are not University employees and belong to one of the following categories:

  • Associate
  • Consultant
  • Fellow of school or college with access for University research, teaching or college functions; this includes Corporation members
  • Postdoctoral fellow
  • Voluntary faculty
  • Student who is not a W-2 employee of the University
  • Any other non-employee individual.

Use the Employee Reimbursement (ER) form to reimburse faculty, staff, contingent workers, postdoctoral associates, retired employees, and student employees.

If you are uncertain of the individual’s employment status, do one of the following:

  • Look up the individual’s status in the Workday HCM system, if you have such access, or
  • Call Employee Records, 2-5538.

Supplier Setup

It is strongly recommended that a payee be set up in the supplier database in advance of payment or reimbursement.  Use Create Supplier Request in Workday.

Advance supplier setup will expedite the Supplier Invoice Request (Check Request) payment.  (For Accounts Payable processing time, see Section 7, Payment Processing).

  • Example:

    At the start of the term, the requester has a list of speakers who will receive honoraria for participating in a lecture series over the next several months.

    The requester prepares and submits Create Supplier Request for the speakers prior to the speakers’ lectures.  The Supplier Compliance Unit (SCU) sets them up in the supplier database and sends you their supplier numbers.

    When it is time to prepare the Supplier Invoice Request (SIR), the payees are already in the supplier database.

Obtain Supplier Invoice Request (SIR), Wire Request (WR), or Petty Cash Replenishment (PCR) Number

The Supplier Invoice Request (SIR) in Workday is used for all three of the requests (mentioned above) and requires the entry of a unique number in the Supplier Reference Number field.  The number consists of a prefix pertaining to the payment followed by the seven-digit transaction control number (TCN) obtained from the Transaction Control Number Generator.

  • Follow the instructions to generate the unique TCN.
  • The TCN generator lets you request multiple SIR numbers at one time. If you do this, you can print the list of generated numbers. Be sure to use each TCN only once.

Enter the TCN in the Supplier Reference field (SIR: XXXXXXX).  This number uniquely identifies each SIR, Wire, or PCR.

Note: For Petty Cash Replenishment, enter the PCR in the Supplier Reference field as a CR XXXXXXX and make a note in the Memo field that request is a Petty Cash Replenishment.

Wire Transfers

Note: In order to pay a supplier via Wire Transfer in Workday, the Supplier must first be set up for wire payment.  Please complete 3401 FR.01 Wire Payment Setup Form to set up the Supplier for wire payment.

  • For New Suppliers: please submit the wire payment setup form with a Create Supplier Request in Workday.
  • For Existing Suppliers: please submit 3401 FR.01 Wire Payment Setup Form to supplier.change@yale.edu.

If you want the Supplier Invoice Request (SIR) to be paid by wire transfer:

  • Complete 3401 FR.01 Wire Payment Setup Form
  • Initiate a Supplier Invoice Request (SIR) in Workday.

Note: The Remit to Connection for wire transfers should end in -WIRE or FXWIRE.

  • Submit for Cost Center Approvals through Workday.

Please refer to Procedure 3401 PR.06 Requesting a Wire Transfer for further details.

When to Submit the Supplier Invoice Request (SIR)

Supplier Invoice Request (SIR) for reimbursement of non-employee travel and other expenses must be filed within ten (10) business days after the date of completion of the trip, or the date on which the expenses were incurred.

Reimbursable Expenses

The University will reimburse an expense only if all the following conditions are met:

  • The expense must be a University business expense and must be of a type reimbursed under University policies.
  • The business purpose of the reimbursement must be clearly stated on the Supplier Invoice Request form.
  • The amount of the expense must be substantiated in accordance with University policies (i.e., by original receipts).
  • If applicable, the time, date and place of University business travel or entertainment must be included on attached backup. The business relationship to the University of persons entertained or using the facility or property must also be included on the backup or within the request.

Expenses that are reimbursed based on the conditions set forth above are not treated as income to the individual and generally will not be subject to tax withholding or reporting.

If an expense does not satisfy the conditions set forth above, but is reimbursed, the amount may be reportable as taxable income and subject to tax withholding and /or reporting.

Note: See next section for special limitations on reimbursements to individuals who are not citizens or permanent residents of the U.S.

Immigration Status and Eligibility for Payment

The Immigration and Naturalization Service restricts the types of payments that can be made to persons who are neither citizens nor permanent residents of the United States.

Departments should work with the Office of International Students and Scholars (OISS) prior to the individual’s arrival in the U.S. to arrange for the appropriate visa for the type of payment contemplated.

If the person is already in the U.S., verify payment eligibility before commissioning the individual to provide services or agreeing to reimburse him or her for expenses.  In some circumstances, the individual may not be eligible for the desired payment.

Refer to Check Request for International Payees, a comprehensive guide and planning tool maintained by the University Tax Office regarding payments to international visitors.  It provides the following information:

  • Immigration and Naturalization Service (INS) rules and restrictions
  • Required documentation for payments by the University, and
  • Federal and state income tax withholding and reporting rules applicable to the University.

For assistance, contact Office of International Students and Scholars (OISS) at 203-432-2305 or the International Tax Office at 203-432-5597.

Required Documentation

Non-employee individuals must submit receipts to support expenses for which reimbursement is requested. See Section 3 for specific documentation requirements for travel expenses and for business meals and entertainment.  For non-employee travel reimbursement guidelines refer to Policy 3301 Travel on University Business.

See Section 2 of this procedure for documentation requirements for payments to individuals who are neither U.S. citizens nor lawful permanent residents.

See Section 4 for documents that may be required for payments to athletes or entertainers who are not Connecticut residents who wish to claim exemption from the Connecticut A&E Tax or a reduced rate of withholding.

If You Have Questions

If you have any questions about the Supplier Invoice Request (SIR) in Workday or required supporting documentation, contact the Finance Service Center (FSC) at 203-432-5394 or sharedservices@yale.edu.

Payee Name

Enter the Payee Name; this is the legal name of the person or organization to which the check will be issued.

  • The check can only be made payable to the company or individual providing the goods or services; it cannot be made payable to an alternate payee, such as a charity or mutual fund, on the individual’s behalf.
  • If applicable, enter the Trade Name.  Certain suppliers, especially sole proprietors, may use a business name that is different from the name they use with the IRS.
    • Example: John Jones has an appliance repair business.  He files taxes under the name John Jones (supplier legal name), but he calls his business Jones Appliance Repair (trade name).

Payee Address-Supplier Connection

Enter the payee’s payment mailing address by choosing Remit-To Connection.  This information is required to submit a Supplier Invoice Request.  If the Supplier has more than one Remit-To Connection, choose the one that corresponds to the address to which the payment is to be delivered.

If you do not want the check mailed to the payee, enter the appropriate Handling Code on the Supplier Invoice Request header.

Special Handling Options

Check held at the Accounts Payable Office Requires an authorized person from the department to pick up

  • Choose: Special Pickup 2 Whitney
  • When the check is ready for pickup, Accounts Payable will notify the department at the email address provided.
  • The person who picks up the check must present his/her Yale ID.

Check held for pickup
Medical School

  • Choose: Special Pickup Med Sch Treas
  • When the check is ready for pickup, Accounts Payable will notify the department at the email address provided.
  • The person who picks up the check must present his/her Yale ID.

Citizenship Status

If the payee is…

Then…

A U.S. citizen or a lawful U.S. permanent resident (green card holder)

  • No additional information is required if all required tax documentation is on file (W9).

Neither a U.S. citizen nor a lawful U.S. permanent resident

  • If supplier is not a U.S. citizen or U.S. permanent resident, attach a copy of the individual’s I-94 form.
  • Determine other required documentation by consulting the Check Request for International Payees web site. Attach all required documents to the Supplier Invoice Request.
  • If the individual is claiming a treaty benefit this must be made clear in the attached documentation.
  • At the line level, enter the country where work was performed.

If required documentation is not attached to support a claimed treaty benefit, tax withholding will automatically be deducted from payments (except for substantiated qualifying reimbursements).

General Guidelines

Non-employee travel expenses are expected to comply with University policy to be eligible for reimbursement.  Specific guidelines are contained in Policy 3301 Travel on University Business.

Department lead administrators should assess the reasonableness and validity of claimed expenses before authorizing reimbursement, and should make certain that the individual has submitted adequate supporting documentation for all claimed expenses, as described below.

All reimbursement requests for travel expenses should be submitted within two weeks (10 business days) after the completion of the trip.

In the line level of the Supplier Invoice Request, enter a brief description of each travel expense, the charging instructions, and the amount of that expense.

Documentation

Travelers must provide receipts to support University business expenses for which reimbursement is requested.  For any single travel expense, up to $75, receipts are not required.  If the per diem rate is used for meals and incidental expenses, receipts are not required for those expenses.  Receipts are required for all other expenses.  Please refer to Policy 3301 Travel on University Business.

Original receipts must always be submitted for the following:

  • Major mode of transportation (unless directly billed to the University): for air travel, the passenger receipt coupon
    • Travelers can request a passenger coupon at check-in.  If a traveler is unable to obtain a coupon, a copy of the itinerary with proof of payment (e.g., credit card statement) is an acceptable alternative.
  • Lodging: the original itemized hotel receipt
  • Personal meals if claiming actual expenses rather than the per diem rate, meals up to $75 receipts are not required.
  • Car rental: the final receipt indicating daily rate, mileage, vehicle size, insurance options, plus gas receipts
  • Business meals and/or entertainment: a receipt that itemizes any alcoholic beverages separately.  A list of attendees with their business relationship to Yale must also be provided.

Missing Receipts

If a receipt is missing for travel expenses over $75, it is the responsibility of the individual to make every effort to obtain duplicate receipts.

If a duplicate receipt is impossible to obtain, department lead administrators may authorize reimbursement of unreceipted travel expenses up to $1,000, other than those listed above.  If there is no receipt for expenses that exceed $1,000, an exception to the policy must be acquired from the office of the controller for staff and office of the provost for faculty.

Note: Authorization of unreceipted expenses should be an exception, not a general practice.

Transportation

         Air, Rail, Car Rental

If car rental, air or rail tickets were directly billed to the department via a Travel Requisition, do not list those items on the Supplier Invoice Request (SIR).

Itemize separately the major mode of transportation, unless the expense was directly billed to the University.  Enter the charging instructions, the appropriate spend category, and the total reimbursable amount.  On subsequent lines, enter any other reimbursable transportation expenses, with charging instructions and totals.

Penalty Fees

If a trip is changed or cancelled because of University business needs or circumstances beyond the traveler’s control (e.g., conference or event canceled), the individual can be reimbursed for airline penalty fees on presentation of:

  • The printed itinerary that includes the changed or cancelled flight, and
  • Documentation of the penalty charge, proof of payment (credit card statement or cancelled check), and reason for the change or cancellation.

Individuals will not be reimbursed for penalty fees resulting from trip changes or cancellations for personal convenience.

Unused Tickets

If the ticket is refundable, a refund should be obtained.

If the ticket is nonrefundable and was direct-billed to the University through Yale Travel Services, it can be applied to the traveler’s next Yale-related trip.  If the unused ticket is a paper ticket, the traveler should return it to the department for retention.

If the ticket is nonrefundable but was purchased with a personal credit card for reasons of personal convenience, the traveler will not be reimbursed for the airfare until the trip is taken.

Ground Transportation (Vehicle Mileage, Taxi)

A non-employee who uses a personal vehicle for travel on University-related business can be reimbursed at the mileage rate published in the Controller’s Office Fact Sheet.

  • In the description section, enter the number of business miles traveled in the personal vehicle. Calculate the mileage reimbursement using the established rate, enter the charging instructions and total amount.  Enter the appropriate spend category for domestic and international ground transportation.
  • For an updated listing of spend categories, please consult Spend Categories-Definitions, which is located on the Workday Chart of Accounts webpage.

Lodging

Itemize lodging separately.  Enter the hotel name, number of nights and room rate in the description section. Enter the charging instructions, the appropriate spend category for domestic and international lodging, and the total amount of the reimbursable expense.

The traveler will not be reimbursed for a deposit or guarantee penalty if he/she failed to make a timely cancellation notification, unless there were extenuating circumstances beyond the control of the traveler. To obtain such reimbursement, the traveler must submit documentation of the extenuating circumstances that justify reimbursement.

Personal Meals

         Actual Expenses

Reimbursement should be requested for actual personal meal expenses whenever possible.

  • Enter Personal Meals Actual Expenses in the description section.  Enter the charging instructions and the total actual cost of the meals, as reflected in attached receipts.
  • For meals up to $75 receipts are not required.
  • Alcoholic beverage expenses must be listed on a separate line and charged to the appropriate spend category.  Alcohol cannot be charged to federal grants and contracts.

Per Diem

When it is not possible or practical to claim actual meal expenses, the federal published per diem rates for meals and incidental expenses (M&IE) can be claimed, for the continental United States and for foreign countries.

  • Enter Personal Meals Per Diem, the applicable per diem rate, and the number of days claimed, in the description section.  Enter the charging instructions and the total per diem amount claimed.  Enter the appropriate spend category for domestic and international meals.
  • For an updated listing of spend categories, please consult Spend Categories-Definitions, which is located on the Workday Chart of Accounts webpage.
  • Federal per diem rates are updated periodically.  Be sure to use the rates in effect on the dates of travel.  It may be helpful to attach a copy of the pertinent per diem rate web page.  Department lead administrators are responsible for monitoring correct use of per diem rates.
  • Incidental expenses included in the federal M&IE rate are laundry, dry cleaning, and tips for services.  When the per diem rate is used, the traveler should not request reimbursement for such expenses separately.

Travelers may be reimbursed both actual meal expenses and per diem during a single trip, but only one method of reimbursement may be used for any given calendar day.

Reimbursement should only be claimed when the traveler incurred actual travel-related meal expenses:

  • The per diem should not be used when meals were paid for by a host or included in conference registration fees.
  • When travel covers only part of a day, such as the day of departure or return, or if the cost of one or more meals is covered by another source, use actual expenses or prorate the per diem rate accordingly.

Business Meals and Entertainment

In certain cases, non-employees may be reimbursed for business meals and entertainment events that are appropriate to the situation and the nature of the business conducted by Yale schools and departments.

  • Business meals are meals at which faculty, staff, students or external parties are present to conduct substantial and bona fide University business.
  • Business entertainment and/or other social events are events involving faculty, staff, students or guests of the University in which a substantial purpose of the event is social in nature.

In the Business Purpose section of the Supplier Invoice Request (SIR) form (Memo field), briefly state the business purpose of the meal or event, and list the attendees with their business relationship to Yale. Attach the list on a separate sheet if necessary.

Itemize each reimbursable business meal or event expense.  Enter a brief description of the meal or event, the charging instructions and the amount.  Enter the appropriate spend category for Business Meals.

Alcoholic beverage and entertainment expenses must be listed on a separate line.  These expenses cannot be charged to federal grants and contracts.  Enter the spend category for Alcohol and Entertainment.

Other Travel Expenses (Miscellaneous)

Travelers may request reimbursement for:

  • Laundry services that are reasonable and necessary due to an absence from home for more than five consecutive days or when unusual circumstances mandate these services.
  • Costs for laundry and tips for services are included in the per diem rate for meals and incidental expenses.  If the per diem rate is used, the traveler should not request reimbursement for such expenses separately.
  • Telephone calls or internet services that are reasonable and necessary for conducting University business, and a reasonable number of personal telephone calls that allow travelers to stay in contact with their families.

Itemize claimed expenses on the Employee Reimbursement, enter the appropriate charging instructions. (i.e., do not list as “miscellaneous expenses”) and attach receipts.  Enter the appropriate spend category for domestic and international travel expenses.  For travel expenses up to $75, receipts are not required.  

Other personal expenses incurred while traveling on University business will not be reimbursed.  These include in-room movie rentals, in-room alcoholic beverages, babysitting, recreational activities, and similar expenses.  See Policy Section 3301.6 Expenses Considered Personal and Not Reimbursable for a list of miscellaneous non-reimbursable travel expenses.

Conference Fees

Use the Supplier Invoice Request for conference and registration fees that need to be paid prior to the conference.  Enter the appropriate charging instructions and spend category for conference fees.

Note that conference and registration fees that have been paid by the employee will be reimbursed after the event has taken place.

What to Include

Itemize in this section all payments to non-employees for:

  • Honoraria
  • Prizes and awards
  • Study subject participation
  • Royalties.

For each payment, enter a description of the item or service (for lectures, performances or other events, include the date(s) of the event), the charging instructions, the appropriate spend category, and the amount.

Attach supporting documents.

CT Athlete and Entertainer Tax

If the payee provides services as an athlete or entertainer, including public speakers and guest lecturers, etc., and is not a Connecticut resident, the State of Connecticut requires that Yale withhold 6.99% state tax from the payment, unless the payee qualifies for a reduction in withholding or exemption from withholding. See Policy 3410 for more information.

For help in determining the applicability of this withholding tax, contact Yale Tax Compliance and Planning at 203-432-5530 or visit their website.

If the payee…

Then…

Claims exemption from withholding

  • Attach a completed and signed Form CT-590 to the Supplier Invoice Request. The individual must qualify for exemption based on one of the reasons provided on the Form CT-590.

Does not qualify for exemption, or the necessary forms claiming exemption are not attached to the CR

  • Assess the CT A&E Tax on the line level per instructions of the Tax Office.

Wishes to request reduced withholding

  • The individual must submit Form CT-588 directly to the State of Connecticut. In response, the State will send an authorized Form-CT-595 to the University setting forth the reduced withholding rate. Attach this Form CT-595 to the Supplier Invoice Request.

It is important to establish eligibility for reduced withholding before the first payment is made to avoid complicated correction procedures.

Other Types of Payments

Use the Supplier Invoice Request to request payments that cannot be made with a purchasing card and where there is not a standard invoice such as:

  • Goods up to $500
  • License fees
  • Conference fees      
  • Subscriptions
  • Reprints
  • Dues and memberships, etc.

The Supplier Invoice Request process should not be used to pay for goods over $500.  Such items must be purchased via a purchasing card (PCard), Non-PO request, or standard purchase requisition, subject to the limits associated with each method.  See Policy Section 3201.3 General Purchasing for preferred methods.

For each allowable item, enter a brief description, the charging instructions, appropriate spend category, and the total amount of the expense.

Attach receipts.

If you have an order form, registration form, etc., that must be enclosed with the payment:

  • Choose the handling code: Special Pickup-2 Whitney or Special Pickup- Med Sch Treas. 
  • Accounts Payable (AP) will notify the department via email when the check is ready for pickup. After the check is picked up, attach the required documentation and mail with the check.

Calculate Total Amount

Workday will automatically calculate the line totals and compare them to the amount entered in the header. The system will alert the initiator if the totals are not in balance, if fields are left blank, or entries are incorrect. This provides an opportunity to correct errors before submitting requests.

Outstanding Advances

If the payee is a postdoctoral fellow or student who has an outstanding advance, the outstanding amount must be deducted from this payment request.  If the outstanding amount is greater than the requested payment, the individual owes the University a refund of the excess amount of the advance.

  • Enter the Travel or Expense Advance Request (TEAR) number in the designated space.
  • Enter the outstanding advance amount in the Outstanding Advance Amount field.
    • If another Supplier Invoice Request (SIR) has previously been submitted to offset a portion of the advance, enter only the remaining outstanding advance amount, not the total original advance amount.
  • The Excel version of the Supplier Invoice Request (SIR) automatically calculates the difference between Total Amount and the Outstanding Advance Amount.  The result displays as Amt Due Payee or Refund to Yale.
  • If you are completing the form on paper, subtract the outstanding advance amount from the Total Amount.
    • If the Outstanding Advance Amount is less than the Total Amount, enter the difference as Amt Due Payee.
    • If the Outstanding Advance Amount is greater than the Total Amount, enter the difference as Refund to Yale.

Amount Due Payee vs. Refund to Yale

Amount Due Payee is the amount that the payee will receive.

  • The check will be mailed to the individual’s payment mailing address unless special handling is requested at the top of the form.

Refund to Yale is the remaining amount of an outstanding advance that the payee must repay to the University.

  • Obtain a check from the individual for this amount, payable to Yale University. (Use of cash to settle a balance due Yale is discouraged.)
  • Attach the check when submitting the Supplier Invoice Request (SIR) form.  AP will enter a RIF deposit record for the payment.

Initiator

Enter the initiator’s name, phone number, department and e-mail address in the spaces provided.  This information is essential so that you can be contacted if there is a problem with the Supplier Invoice Request (SIR).  The preparer must sign the form.

Authorization

For non-employee reimbursements, the payee’s signed request for reimbursement (e.g., a letter or memo) must be attached to the SIR.  This serves as the individual’s authorization for the request.

In Workday, the request for reimbursement will be automatically routed to the appropriate Cost Center Approver for final approval.

  • The Cost Center P2P Approver - $1K approves the transaction or edits as necessary.
  • Spend authorizations with a value between $1,000 and $10,000 will be approved by the Cost Center P2P Approver -$10K.
  • Spend authorizations with a value greater than $10,000 are approved by the Cost Center P2P Approver - Unlimited (typically a Lead Administrator) and the Yale Controller.

If exceptions to University policy have been authorized, the Controller or designee must approve. Relevant supporting documentation must be attached to the Supplier Invoice Request.

Submission and Record Retention

Submit the Supplier Invoice Request (SIR) as shown below.  Retain records in accordance with University Policy 1105 Retention of University Financial Records.  Records should be readily available in case of questions or audit.

If department has distributed reimbursement authority…

If department does NOT have distributed reimbursement authority…

Do not submit receipts to Accounts Payable.

Attach original receipts and other required documents to the CR:

  • Retain all required original receipts and other supporting documents.
  • Retain copies of all receipts and other attachments.
  • Submit the completed Supplier Invoice Request for department approvals. The final approver will submit the request to AP for review, all subsequent reviews and/or approvals necessary for payment.
  • Submit the completed Supplier Invoice Request for department approvals. The final approver will submit the request to AP for review, all subsequent reviews and/or approvals necessary for payment.

Payment Processing

If there are errors in the Supplier Invoice Request (SIR), or additional information is needed, issuance of payment may be delayed.

To expedite payment, departments should:

  • Carefully review Supplier Invoice Request (SIR)s before submitting them
  • Make sure that the payee’s correct Supplier Connection is in the supplier database
  • Respond promptly to Accounts Payable requests for clarification or correction

Supplier Invoice Request (SIR)s requiring secondary approvals will usually take longer than 5 business days to process.

If the payee is claiming a treaty benefit, there is a 10-day waiting period, beginning with the day that Form 8233 is sent to the IRS, before payments can be issued.